The government is failing to stop leading universities shutting down departments crucial to scientific research, according to an influential group of MPs. Members of the Commons science and technology committee said that the government had "no effective lever" to stop departments scrapping expensive science courses because of the internal market created by ministers.

Phil Willis, the committee's chairman, said: "This is the logical outcome of introducing a market in higher education. It is not the fault of the market but it is having a disastrous effect on the provision of science." The report follows a string of department closures at Exeter, King's College London, Queen Mary London and Swansea and comes on the day that Sussex University holds crucial discussions on the future of its chemistry provision.

Mr Willis said: "The government rightly recognises the need to protect the provision of science, technology, engineering and mathematics (Stem) subjects but by leaving the autonomy of universities unfettered, while pursuing a market-driven education policy, it has left itself with no credible way of doing so." The report criticised the Higher Education Funding Council (Hefce) which, it said, had insufficient powers to intervene. Two years ago the then education secretary Charles Clarke asked Hefce to draw up a list of strategically important subjects and asked it to prevent more universities closing their science departments.

But Mr Willis said the moves had failed. "The government rightly recognises the need to protect the provision of Stem subjects but by leaving the autonomy of universities unfettered ... it has left itself with no credible way of doing so," he said. The report also criticised the proposed closure of Sussex's chemistry department, saying that senior management dealt with a "seriously flawed" process "particularly ineptly". Last night Sussex University said it accepted it should have alerted Hefce to its plans earlier but the committee had failed to take a " dispassionate view of the real difficulties which universities faced".